Market opening in the Czech republic

ČESKÉ DRÁHY

2

Passenger Transport

PASSENGER TRANSPORT

REGIONAL Under public service

obligation (PSO)

Operated under long term contracts with each of the

14 regional authorities, including the city of Prague.

LONG-DISTANCE Under public service

obligation (PSO)

Consists of long-distance and international rail transportation activities. Operated

under long term contract with the State represented by the Ministry of Transport.

OPEN ACCESS Free market competition

Non-regulated passenger transportation operations. It includes operations of SC

Pendolino or IC/Ex Praha – Ostrava + night services.

3

2016 2011 2010 2014 2015 2012 2013 2010 2015 2016 2012 2011 2014 2013

2016 2011 2010 2014 2015 2012 2013 2010 2015 2016 2012 2011 2014 2013

NUMBER OF PASSENGERS

(mil.)

TRAFFIC PERFORMANCE

(mil. person-km)

Key indicators growing

AVERAGE TRAFFIC DISTANCE

(km)

LONG DISTANCE REVENUES

(mil. CZK)

171.5 7 380

43 27 % growth

4

ČD active policy When the market way opened…

Since 2013

Service on board

Newspapers and water for free in 1st class, ČD

minibar extended

New web

and e-Shop

Revenue management Dynamic tariffs

iintroduced

“My train“

app Complete info and

ticketing app, 713,000 users

400 + Wi-Fi

free connection in coaches

Number of trips First place among new EU members

17 trips a year

on average

Youtubers introducing traveling with ČD

Youtube

400 coaches

(new or modernised fleet introduced in long distance)

Instagram

160 km/h

We accelerate by increasing number

of fast trains (250 trains)

Facebook

profile

Online &

web portals

5

Liberalization

IT IS SAID, CZECH MARKET SHOULD OPEN MORE

5

IN ORDER TO MAKE THE RAIL SECTOR MORE ATTRACTIVE

TO THE CUSTOMER

ČD IS PREPARED BUT IT IS NECESSARY TO SET CLEAR

RULES

6

Network principle IMPACTS ON CUSTOMER

01

INTERNATIONAL SERVICE

02 CONNECTIVITY

03 NETWORK PRINCIPLE

04 TICKETING

05 QUALITY

6

06 TRANSPORT PLANNING

7

Different approach INTERNATIONAL NIGHT SERVICE 7

yearly PSO

No PSO

PSO

1 train PSO

No PSO

8

Number of tenders CONNECTIVITY: 9-11 tenders in long distance 8

9

Number of tenders CONNECTIVITY: 33 notifications in regions 9

10

Network principle IF THE STATE EXPENSES ARE DECREASED WHAT WILL HAPPEN TO NETWORK PRINCIPLES?

01 PERSONNEL Broad distribution network in CZE (domestic and international tickets), dispatchers and call centre available non-stop, education and technical preparation of train staff, development of IT ticketing systems, unique check-in system for groups and travellers with bikes

02 ROLLING STOCK ČD has sufficient reserves of loco coaches and personnel for the case of emergency, ČD are largely equipped for transfer of PRM clients (2/3 of the fleet), ČD still has more costy coaches (multifunctional and dining cars

03 ČD keeps the collection of historical coaches, CSR projects, ČD represents CZE in international organisations

10

11

Smart rail principle TICKETING - today 11

12

Smart rail principle TICKETING – future? 12

13

Quality improvement QUALITY – benefit for customer 13

Before liberalization

Top quality offered

Tilting train, high speed, WiFi, air

conditioning, dining car

Liberalization started

3 operators on one line

Preference of „low cost“ model

Liberalization plan for 2019 +

No requirement for new coaches

Tenders based on a concept of the

lowest price

Will it really mean quality improvement?

14

Transport planning PLANNING WITHOUT OPERATORS AND CUSTOMER 14

Customer

Ministry of

Transport

Regions

Operator

Infra manager

15

Network principle SUMMARY – questions to be answered

01

WHO SHOULD COORDINATE THE LIBERALIZATION?

02 ATOMIZATION OF THE MARKET – IS IT REALLY A GOOD WAY TO INCREASE RAIL ATTRACTIVENESS?

03 WHAT WILL HAPPEN WITH THE NETWORK PRINCIPLE?

04 TENDERS BASED ON A LOWEST PRICE – WILL IT REALLY BRING THE QUALITY?

15

05 CUSTOMER MUST BENEFIT FROM LIBERALIZATION WE HAVE TO INCREASE COMPETITIVENESS OF THE SECTOR, NOT ONLY WITHIN THE SECTOR

Thank You for Your attention www.cd.cz

ČESKÉ DRÁHY